Leader: Farewell, Bill Gates?

Bill Gates' planned retreat from the frontline of Microsoft's many battles has understandably made headlines around the world.

The man is a household name, hugely powerful - all the stuff you already know.

But in truth he hasn't been leading many of the battles for some time. Others may debate how strong a management team will be left, when he fully steps back in two years' time - and for the record Ballmer, Ozzie and Mundie are a pretty formidable team - but more interesting is what the move by the world's richest man says about the stage of his life and the stage Microsoft is at.

It is hard to think of an IT industry without Gates. But we suspect he won't be far away. Given his achievements at Microsoft and the fact that he will still be the company's largest investor, he won't just fade away.

He will also be incredibly visible as the world's largest donor to causes such as fighting malaria and Aids in the developing world.

Last year, as Gates appeared on stage at the London Live 8 event, this publication was appalled to hear some feedback along the lines of his generosity merely being 'good PR'. We never knew an antitrust ruling and business domination in certain areas could smart quite so much.

It appears the latest move shows that his interest in the work of the Bill & Melinda Gates Foundation now is top of his To Do list. (And we'd love to see such a list - it can hardly be on a Post-it note on his fridge.)

So he will soon be more philanthropist than technologist. The balance has shifted.

As for Microsoft, its tough fights - in gaming, the internet, mobility and even its core money-making areas of operating systems and applications increasingly - have been going on for some time.

CEO Steve Ballmer may get more than his fair share of stick, software legend Ray Ozzie (moving from CTO to chief software architect as part of the Gates move) may get more than his fair share of plaudits but together with others the company still stands a chance of doing very well. Wall Street might not always recognise that - witness a stalled share price for a few years now - but it'd be foolish to write them off, even as the driving force of the business takes a step back.

Microsoft is entering a new phase. Gates clearly is too - and might well now have the higher chance of future success.